Raising A
Money Smart
Child
Lori Baltrusis
Family Living Agent
Sawyer County UW Extension
[email protected]
Gail Peavey
Family Living Agent
Polk County UW Extension
[email protected]
What Research Tells Us
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Students knew more about income &
spending than about money management &
saving
The 2008 JumpStart financial literacy survey
of high school seniors found
Students answered 48.3% of questions
correctly
 73% failed

http://www.jumpstart.org/survey.html
By the Numbers

By The Numbers
Chat Question:
Where do youth get most of their
financial information?
1.
2.
3.
4.
Teachers
Media (Celebrities, Magazines, TV etc.)
Friends
Parents
What Research Tells Us
Parents are the main source of
financial education (67%)*
 94% of students ages 16-22
say they are likely to turn to
their parents as a source of
financial information**


Only 26% of 13- to 21-year-olds
report that parents actively taught
them how to manage money. **
*2010 themint.org poll (Unscientific Poll) **2001 Youth and Money Survey
What Research Tells Us

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Our kids can tell us about the “latest” and
the “hottest” in the marketplace.
They are steeped in advertising…
Yet, they know very little about handling
money.
Huge number of our youth don’t know they
should pay more than the required
minimum on their credit card balance.
http://www.themint.org/parents/about-kids-today.html
Parents can:


Create daily conversations about money
Review the financial habits and
attitudes we model for our kids
What Research Tells Us
Grandparents growing
resource for grandchildren
 More than half of grandparents
(55%) say passing down the
value of financial security is
important to them.

*2012 Grandparents Investing in Grandchildren, Met Life, Generations United
What are the top three
subjects most often avoided in
“polite society?



Sex
Religion
Money

Stanley & Einhorn, 2007
Money Habitudes

Habitudes (habits and attitudes) have
more effect on money behaviors than
knowledge


Acquired through modeling by those
around us in childhood
Through experiences in youth and young
adulthood
Syble Solomon, www.moneyhabitudes.com
Money helps me…

Achieve my goals


Feel safe and secure


Free Spirit
Create a positive image


Selfless
Let life happen


Security
Feel good by giving to others


Targeted Goal
Status
Enjoy the moment

Spontaneous
Giving and Volunteering



Encourage children to buy food for food
pantry
Encourage families to pack up clothes
they’ve outgrown or toys and give to
those less fortunate
Charity involves Gifts of TIME as well as
money—encourage children offering of
services without pay
How do we communicate
about finances to the different
generations?
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Depression: 1901-1924
Silents: 1925-1940
Baby Boomers: 1941-1964
Gen X: 1965-1980
Millennials: 1981-1994
Generation Z: 1995-2009
Generation A: 2010-present
When’s A Good Time to Talk?
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Mealtime
In the car
During quiet activities
Watching TV
Shopping together
Paying bills
Events: HOW a discussion gets started
Copyright © PREP Educational Products, Inc. 2008. All rights reserved. 303.759.9931.
How to communicate about issues like money
•
Decide when to talk
– Set aside a specific time to talk about
issues.
– Use the Speaker Listener Technique.
•
Decide when not to talk
– Not when you’re riled-up about an
event.
– Use Time Outs (if necessary.)
16
Calling Time Out
Copyright © PREP Educational Products, Inc. 2008. All rights reserved. 303.759.9931.
“The Speaker has The Floor.”
Copyright © PREP Educational Products, Inc. 2008. All rights reserved. 303.759.9931.
Copyright © PREP Educational Products, Inc. 2008. All rights reserved. 303.759.9931.
Copyright © PREP Educational Products, Inc. 2008. All rights reserved. 303.759.9931.
In Summary
Spin Quest Game
Please complete the evaluation that will launch after this session
Raising A Money Smart
Child
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National Endowment for Financial Education
www.nefe.com
www.practicalmoneyskills.com
www.themint.org
www.jumpstart.org
www.financial-education-icfe.org
www.kidswealth.com
www.moneyhabitudes.com